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Homework 5(Dennis) 1. What does the Central Limit Theorem tell us about the sampling distribution of the sample mean? Solution: If the sample size n is sufficiently large, then the population of all sample means is approximately normal. 2. Suppose that we will take a random sample of size n from a population having mean and standard deviation . For each of the following situations, find the mean, variance, and standard deviation of the sampling distribution of the sample mean x : a 10 , 2 , n=25 b 3 , 0.1, n=4 c 500 , 0.5 , n=100 d 100 , 1 , n=1,600 a. x 10 2 22 4 .16 n 25 25 2 2 x .4 n 25 5 x2 b. x 3 x2 x c. 2 n (.1) 2 .01 .0025 4 4 .1 n 4 .1 .05 2 x 500 2 (.5) 2 .25 .0025 n 100 100 .5 .5 .1 .1 x .05 x .05 n 100 10 n 4 2 x2 d. x 100 2 (1) 2 1 .000625 n 1600 1600 1 1 x .025 n 1600 40 x2 3. THE BANK CUSTOMER WAITING TIME CASE Recall that the bank manager wants to show that the new system reduces typical customer waiting times to less than 6 minutes. One way to do this is to demonstrate that mean of the population of all customer waiting times is less than 6. Letting this mean be , in this exercise we wish to investigate whether the sample of 100 waiting times provides evidence to support the claim that is less than 6. For the sake of argument, we will begin by assuming that equals 6, and we will then attempt to use the sample to contradict this assumption in favour of the conclusion that is less than 6. Recall that the mean of the sample of 100 waiting times is x =5.46 and assume that , the standard deviation of the population of all customer waiting times, is known to be 2.47. a. Consider the population of all possible sample means obtained from random samples of 100 waiting times. What is the shape of this population of sample means? That is, what is the shape of the sampling distribution of x ? Why is this true? b. Find the mean and standard deviation of the population of all possible sample means when we assume that equals 6. c. The sample mean that we have actually observed is x =5.46. Assuming that equals 6, find the probability of observing a sample mean that is less than or equal to x =5.46. Solution: a. Normal because the sample is large (n 30) b. x 6, x c. n 2.47 100 .247 5.46 6 P( x 5.46) P z P( z 2.19) 1 .9857 .0143 .247 4. The sampling distribution of deviation 1. FALSE must be a normal distribution with a mean 0 and standard 5. For any sampled population, the population of all sample means is approximately normally distributed. FALSE 6. The sampling distribution of a sample statistic is the probability distribution of the population of all possible values of the sample statistic. TRUE 7. The standard deviation of all possible sample proportions increases as the sample size increases. FALSE 8. The central limit theorem states that as sample size increases, the population distribution more closely approximates a normal distribution. FALSE 9. If a population is known to be normally distributed, then it follows that the sample standard deviation must equal . FALSE 10. The central limit theorem states that as the sample size increases the distribution of the sample ________ approach the normal distribution. A. Medians B. Means C. Standard deviations D. Variances 11. As the sample size ______________ the variation of the sampling distribution of ___________. A. Decreases, decreases B. Increases, remains the same C. Decreases, remains the same D. Increases, decreases 12. If the sampled population has a mean 48 and standard deviation 16, then the mean and the standard deviation for the sampling distribution of A. 4 and 1 B. 12 and 4 C. 48 and 4 D. 48 and 1 E. 48 and 16 for n=16 are: